The Cost of Capital Generally Varies Inversely with the Size

question 9

True/False

The cost of capital generally varies inversely with the size of the capital structure.

---

Definitions:

Corps-years

A unit of measure combining the number of corps and the duration in years, though the term might not be standard across contexts.

Horse Kicks

Refers to data or instances used in statistical analysis or historical record-keeping, often cited in studies of rare events or to illustrate principles of probability.

Chi-square Statistic

A measure used in statistics that quantifies how much observed counts diverge from expected counts.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and it is tested against an alternative hypothesis.